Is It a Good Time to Buy a Car?

The auto industry is going through a lean patch and is trying to lure customers with tempting offers. As buying in and around Diwali is considered to be auspicious, you might get tempted to make that purchase. However, there are many factors you need to take into consideration before making the final decision. Here are few things you should know before signing the dotted line

Credit Approval

Credit market is extremely tight and banks are rejecting loan applications left and right. If you know your credit worthiness has a tiny bit of smudge on it, chances are you will be getting credit at higher interest rates. Avoid buying a car under such conditions.

Buy What You Need and Not What You Want

Do not fall into the trap of buying a big car just because the down payment is low and your relatives and friends will be impressed. Bigger is definitely not better, at least as far as cars on Indian roads are considered. Most companies are offering hefty discounts on bigger cars to clear-off the stock. Only if you need a bigger car and cannot do with hatchback, go for a bigger car.

Elections are Around the Corner

Political uncertainty is playing spoilsport in the capital, commodity and currency market. This is severely affecting pricing of vehicles that are fully or partially imported. If you are planning to make a big ticket investment, it's better to play a wait and watch game till the fog clears. Once the markets are stable, most of the things will be clear helping you in taking a firm decision.

A car has become a necessity today, but that does not mean you make this investment without giving it a thorough consideration. Just because it's a festive season, walking into a car dealership and making the purchase is not a good idea.

The following article has been contributed by Vishal Ingole, who is a freelance writer.

This article is a part of the our Best Time to Buy Series, if there are any suggestions for this series or if you do not agree with our opinion, please write to us at tips@Lifehacker.co.in

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